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Cement firm Lafarge pleads guilty to supporting IS | Cement firm Lafarge pleads guilty to supporting IS |
(32 minutes later) | |
Islamic State has become one of the most formidable jihadist groups in the world | Islamic State has become one of the most formidable jihadist groups in the world |
French cement maker Lafarge has pleaded guilty in the US to supporting the Islamic State and other terror groups. | French cement maker Lafarge has pleaded guilty in the US to supporting the Islamic State and other terror groups. |
The firm agreed to pay a $777.8m (£687.2m) fine for paying bribes to keep a factory running in Syria after war broke out in 2011. | The firm agreed to pay a $777.8m (£687.2m) fine for paying bribes to keep a factory running in Syria after war broke out in 2011. |
Prosecutors said it marked the first time a company had pleaded guilty in the US to aiding terrorists. | Prosecutors said it marked the first time a company had pleaded guilty in the US to aiding terrorists. |
Lafarge said it "deeply regretted" the events and "accepted responsibility for the individual executives involved". | Lafarge said it "deeply regretted" the events and "accepted responsibility for the individual executives involved". |
The cement manufacturer, which was bought by Switzerland's Holcim in 2015, said their behaviour had been in "flagrant violation" of Lafarge's code of conduct. | The cement manufacturer, which was bought by Switzerland's Holcim in 2015, said their behaviour had been in "flagrant violation" of Lafarge's code of conduct. |
The firm opened its plant in Jalabiya near the Turkish border in 2010 following a $680m investment. | The firm opened its plant in Jalabiya near the Turkish border in 2010 following a $680m investment. |
US prosecutors said that Lafarge's Syrian subsidiary had paid Islamic State and another terror group, al Nusra Front, the equivalent of $5.92m to protect staff at the plant as the country's civil war intensified. Executives likened the arrangements to paying "taxes", they said. | US prosecutors said that Lafarge's Syrian subsidiary had paid Islamic State and another terror group, al Nusra Front, the equivalent of $5.92m to protect staff at the plant as the country's civil war intensified. Executives likened the arrangements to paying "taxes", they said. |
Cement firm probed over terrorist claims | Cement firm probed over terrorist claims |
Cement mega-merger deal in doubt | Cement mega-merger deal in doubt |
Building's hard problem - making concrete green | Building's hard problem - making concrete green |
Lafarge eventually evacuated the plant in September 2014, when Islamic State took control of the town and the factory. | Lafarge eventually evacuated the plant in September 2014, when Islamic State took control of the town and the factory. |
Lafarge had previously admitted bribes were paid after an internal investigation. But US Deputy Attorney General Lisa Monaco said on Tuesday that the company's actions "reflect corporate crime that has reached a new low and a very dark place." | Lafarge had previously admitted bribes were paid after an internal investigation. But US Deputy Attorney General Lisa Monaco said on Tuesday that the company's actions "reflect corporate crime that has reached a new low and a very dark place." |
"Business with terrorists cannot be business as usual," she added. | "Business with terrorists cannot be business as usual," she added. |
In a statement, Lafarge's new owner Holcim said none of the conduct involved Holcim, "which has never operated in Syria". | In a statement, Lafarge's new owner Holcim said none of the conduct involved Holcim, "which has never operated in Syria". |
It added that former Lafarge executives involved in the bribery had concealed it from Holcim, as well as external auditors. | It added that former Lafarge executives involved in the bribery had concealed it from Holcim, as well as external auditors. |
Eric Olsen, who ran Lafarge and Holcim until 2017, stepped down from his role following an investigation into Lafarge's activities in Syria. | Eric Olsen, who ran Lafarge and Holcim until 2017, stepped down from his role following an investigation into Lafarge's activities in Syria. |
At the time, Mr Olsen said he had not been involved in any wrongdoing and was standing down to bring "serenity" to the company. | At the time, Mr Olsen said he had not been involved in any wrongdoing and was standing down to bring "serenity" to the company. |
The Department of Justice said that senior executives at Lafarge were involved in the arrangements and aware they risked running afoul of authorities. | |
The dealings with armed groups took place before Lafarge merged with Holcim | The dealings with armed groups took place before Lafarge merged with Holcim |
Executives had attempted to require Islamic State not to include the name "Lafarge" on documents memorializing and implementing their agreements and many involved in the scheme also used personal email addresses, rather than their corporate email addresses, to carry out the conspiracy, the Department said. | |
Lafarge executives also backdated the termination agreement to Aug. 18, 2014, a date shortly after the United Nations Security Council had issued a resolution calling on member states to prohibit doing business with Islamic State, to falsely suggest that negotiations with Islamic State had not occurred after the UN resolution, the Department said. | |
After the proceedings in a Brooklyn federal court, assistant Attorney General Matthew G. Olsen of the Justice Department's National Security Division commented: "The defendants routed nearly six million dollars in illicit payments to two of the world's most notorious terrorist organizations - ISIS and al-Nusrah Front in Syria - at a time those groups were brutalizing innocent civilians in Syria and actively plotting to harm Americans". | After the proceedings in a Brooklyn federal court, assistant Attorney General Matthew G. Olsen of the Justice Department's National Security Division commented: "The defendants routed nearly six million dollars in illicit payments to two of the world's most notorious terrorist organizations - ISIS and al-Nusrah Front in Syria - at a time those groups were brutalizing innocent civilians in Syria and actively plotting to harm Americans". |
"There is simply no justification for a multi-national corporation authorizing payments to designated terrorist organisations," he added. | "There is simply no justification for a multi-national corporation authorizing payments to designated terrorist organisations," he added. |
Lafarge also faces charges of complicity in crimes against humanity in France over its activities in Syria, but the company denies the claims. | Lafarge also faces charges of complicity in crimes against humanity in France over its activities in Syria, but the company denies the claims. |